unnamed

In order to increase imports to meet the domestic demand, the number of container vessels added to shipping lines is increased from 24 to 37 this month

According to the Myanmar Ports Authority, the number of container vessels will increase from 24 to 37 in May, as the number of container vessels is expected to be extended in May to increase exports during the open season and increase imports to meet domestic demand. The number of ships arriving at Rangoon ports was low between February and March this year, and a total of 24 container vessels are scheduled to be launched by the shipping line in the last week of April. A total of 33 container vessels are scheduled to be shipped to Yangon port in May this year to ensure timely shipments, and special routes will be added to meet market demand, according to the Myanmar Port Authority.

A coordination meeting was held to facilitate the international trade, the import of goods and the flow of goods, to increase the number of container vessels and to meet the demand for containers for export. At the meeting, the Chief Executive Officer of Myanmar Port Authority has reported a drop in container arrivals at Yangon Port since the COVID-19 incident. He called on Myanmar to work together to increase the volume of shipping and reduce the need for container shipping in international trade, with the ongoing demand for containers in the global market, and especially in the Asian and Southeast Asian markets, the current demand for containers and refrigerated containers in Myanmar to ensure timely export and safe port operations as usual.

The Chief Executive Officer also briefed on the current situation of daily port operations at various container ports. The shipping lines are also currently suspending / suspending some vessels. In May this year, a total of 24 container vessels are scheduled to be operated by shipping lines. Depending on the market demand, special flights will be provided. He explained the conditions for providing containers and refrigerators for exporters. The discovery of a new waterway in the Yangon River has allowed international vessels to enter and leave the port of Thilawa, which has been allowed to raise the water limit. According to a statement from the Myanmar Ports Authority, 152 vessels over 30,000 tonnes entered Rangoon port and Thilawa port in the five months since the new dam was allowed to be extended due to the discovery of a new waterway on the Yangon River.

Source: Daily Eleven

51545784_1180553598814538_5110886957685145600_ommk

JICA and SME Development Bank will provide loans for investment projects up to five years

JICA and SME Development Bank will jointly provide loans for investment projects with an interest rate of 5.5% per annum for up to five years, SME Debelopment Bank has announced. The JICA Loan is a joint venture between the Japan International Cooperation Agency and the SME Debelopment Bank for a five-year loan. The types of businesses that will be able to get loans are those that are specified by JICA. A JICA loan can be applied for up to five years simply by having land and a building as collateral. At least 80% of the loan must be invested in fixed assets, 20% can be used as working capital and the interest rate is 5.5% per annum. This type of loan is suitable for investing in fixed assets, such as the expansion of restaurants, factory Expansion of a building or business building, preparation new construction, purchase of equipment, upgrading machinery.

Applicants for the JICA Loan must submit three license photos taken within six months, copy of registration Copy of household list Valid business license, proof of business and actual residence, three-year income tax return, three-year financial statements (income, expenditure loss / profit statement), mortgage (land and building), map / land History (105/106) written in six months with a note to borrow from SME Debelopment Bank. Oath of ownership of collateral, mortgage title deed, in front of the warranty photo. Next, Left three photos of the yard and business, DICA Registration Number Loan application plan, minutes of the meeting and list of insurance items / values are required.

Over the past three years, the JICA Two Step Loan has provided over 223 billion kyat in agriculture and rural development loans by state and region, with Ayeyarwady Region providing the largest loan of over 56 billion kyat, according to the Central Statistics Office, citing the Myanma Agriculture Development Bank. From July 21, 2017 to the end of October 2020, JICA Two Step Loan provided loans by over 56 billion kyats (56,602.33 million) in Ayeyarwady Region and over 54 billion kyats (54,287.45 million) in Bago Region. 4,154.24 million kyats in Kachin State; 5982.05 million kyats in Kayah State; 8163.06 million kyats in Magway Region; 23016.25 million kyats in Mandalay Region; 9183.63 million kyats in Mon State; 1585.2 million in Rakhine State; 17457.69 million kyats in Yangon Region; 179,258.64 million kyats in Shan State and 5,152.57 million kyats in Nay Pyi Taw.

Source: Daily Eleven

rubber-0-720x477

Rubber export generates $240 mln revenue in five months

Myanmar’s rubber export earned more than US$240.74 million in the first five months (Oct-Feb) of the current financial year 2020-2021, the Ministry of Commerce’s data showed. Mon State’s rubber market data showed that the price of domestic natural rubber jumped to nearly K1,000 per pound as global rubber is in a bull market. Natural quality rubber was priced at K750 per pound in late January 2021, whereas it soared to above K900 per pound (for RSS1 and RSS3) in May. Myanmar’s natural rubber price tracks the global rates, Myanmar Rubber Planters and Producers Association (MRPPA) stated. The pandemic hinders international producers. Consequently, natural rubber prices went into a bear market in 2020. However, the natural rubber hit up to K1,000 per pound at the end of 2020. Myanmar’s rubber is priced lower than the international rate owing to raw material variability.

Rubber price stood at US$2,600 per tonne in 2020-end in global market, whereas Myanmar rubber fetches only $2,100 per pound. Uniformity is an important quality measure. Tyre manufacturers do not need to change the formula in the production process because of raw material risks. Product uniformity can bring sustainable development for both sides. If there is no raw material variability and risk factor, the price will automatically go up, MRPPA stated. Myanmar’s rubber body is endeavouring to export its natural rubber with the country of origin labelling to external markets. Nevertheless, illegal exports are happening, and it contributes to revenue losses, according to MRPPA. Thailand is buying Myanmar’s natural rubber at a good price through the black market in Payathonezu, Kawthoung and Myeik towns. As a result of this, the government needs to control illegal rubber exports strictly, MRPPA stated.

Thailand re-exports those illegally imported rubber under its origin label. That is why we want to earn the country of origin label, according to MRPPA. Additionally, natural rubber is estimated at K1,300 per pound in Thailand, whereas Myanmar’s rubber is priced about K400 lower than their prices. Myanmar’s rubber has raw material variability. It may lead to quality compliance issues, process inconsistency, productivity problem and high input cost. Meanwhile, Thailand’s rubber is priced at a premium due to quality and consistency. Thailand’s rubber fetches US$2,500 per tonne, while the global rate is at $2,200 per tonne. Rubber is primarily produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber season’s data, there are over 1.628 million acres of rubber plantations in Myanmar. Mon State accounts for 497,153 acres, followed by Taninthayi Region with 348,344 acres and Kayin State with 270,760 acres.

About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber made in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries, according to the MRPPA. At present, Myanmar is exporting only rubber sheets owing to a lack of machinery and technology. Export rubber varieties include synthetic rubber, ribbed smoked sheet RSS 1,3,5, Myanmar Standard Rubber MSR-20, Technically Specified Rubber TSR-20, and Crepe Rubber. About 150,000 tonnes of rubber was exported in the 2017-2018 financial year. Myanmar shipped over 190,000 tonnes of rubber, with an estimated value of $250 million, in order to external markets in the 2018-2019 financial year, an increase of 41,000 tonnes which helped boost earnings by $60 million compared to the year-ago period, according to data released by the Ministry of Commerce. Myanmar exported over 200,000 tonnes of natural rubber to foreign countries last FY2019-2020, generating an income of over $200 million. 

Source: The Global New Light of Myanmar

shutterstock_1098790709-750x500

About 800,000 tons of edible oil is imported annually to meet domestic consumption as the country can produce only 400,000 tons per year

As the country can only produce about 400,000 tonnes of edible oil a year, about 800,000 tonnes of edible oil is imported annually to meet domestic consumption, according to a May 25 meeting to coordinate the import and distribution of safe and healthy edible oil. According to the Ministry of Commerce, about 1.2 million tonnes of edible oil is consumed annually in the country and production is around 400,000 tonnes, with about 800,000 tonnes imported annually. U Myint Cho, Director-General of the Department of Consumer Affairs said.

Efforts are being made to bring imported edible oils in line with the standards and quality set by the government, and efforts are being made to ensure that consumers can purchase safe and healthy edible oils at reasonable prices. Relevant Ministries need to provide the necessary technologies for the development of the oil industry and the supply of raw materials, warehouses, dryers and machine parts are also being made in collaboration with the private sector. The state is providing support for the development of Myanmar’s domestic edible oil production sector.

The government will provide loans to get good and pure seeds for oil crops, to the relevant ministries and agencies to increase the use of technology and modern agricultural equipment, increase acreage yield, reduce production costs and improve the production of high quality products that are safe for consumers. It is reported that they are cooperating with organizations. According to the Myanmar Oil Industry Association, there are more than 3,000 officially registered oil refineries and more than 2,000 unregistered oil refineries, for a total of more than 5,000 oil refineries. Myanmar Oil Entrepreneurs Association for Sagaing, Magway Peanuts from Mandalay Region In collaboration with sesame farmers, in the 2018 monsoon, 6,000 acres and to cultivate 3,000 acres in winter and meet half of the country’s oil demand by 2020.

Source: Daily Eleven